The Intermediary Mortgage Lenders Association (IMLA) forecast in its New Normal 2026/27 report that borrowers would have more options beyond a product transfer and be able to switch to a new lender.
IMLA predicted that the value of remortgage activity would rise to £103bn this year and £110bn in 2027, while product transfers slow.
It said this would be due to the market moving out of a restrictive phase, which saw product transfers grow in popularity. Alongside this, lenders are innovating and expanding the range of products available to borrowers reaching the end of their fixed rate term.
IMLA said mortgage advisers would continue to be key during this shift, as intermediaries still manage more than nine in 10 mortgage transactions, highlighting the vital role of advice.
Kate Davies, executive director of IMLA, said: “The re-emergence of remortgaging is a healthy development for the market. While product transfers have played an important role during a period of stretched affordability, they may not always provide the best long-term answer for borrowers whose circumstances have evolved.
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“For many people, a remortgage is a natural opportunity to take stock and reassess their wider financial position. Income, outgoings, family circumstances and future plans can all change in nuanced ways over the life of a mortgage, and it makes sense for those changes to be reflected in the advice and solutions borrowers receive.”
She added: “With affordability improving and lenders continuing to innovate within a robust regulatory framework, many borrowers now stand to benefit from having a professional broker scour the whole market for the most suitable mortgage solution, rather than simply defaulting to another product with their current lender.”
